CGT tax now on Shares in Self Managed Super

Buying and selling shares will have new handling rules with Capital Gains Tax applying in super funds and SMSFs. Shares will be treated as Capital items rather than trading stocks in SMSF’s. The changes apply from 7:30pm May 10 2011.

Matt Woodington of Financial Standard  reports:

The government has moved to prevent superannuation funds, including SMSFs, from aggressively trading shares by making any resulting gains and losses subject to capital gains tax.

The removal of the exception for super funds trading stocks, primarily shares, units in a trust and land, comes into effect immediately.

The measure will be introduced to reduce speculative trading by super funds including SMSFs, encouraging a reduction in fees and risks associated with trading a high volume of stocks.

The government is looking to reduce the risk being placed on member portfolios by promoting a more stable long-term investment policy among super funds. SMSFs could also be implicated. 

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